This paper studies the real effects of financing constraints during industry downturns, and provides direct evidence that these effects are significantly stronger at the aggregate level. I exploit ex-ante variation in the structure of long-term debt maturity and analyze a broad sample of...

This paper shows that during industry downturns, firms experience significantly greater valuation losses when their industry peers' long-term debt is maturing at the time of the shocks. Across a range of tests, the analysis addresses the endogenous determination of peer debt maturity structure....